Acquisitions Anonymous - #1 for business buying, selling and operating Would You Pay 7x EBITDA for a Background Check Business?
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Dec 6, 2024 Dive into the intriguing world of a California-based background check business, where Michael and Heather analyze its financials and unique market position. With a $7 million asking price and $1.1 million cash flow, they explore its competitive edge and proprietary systems. The discussion highlights challenges posed by tech disruptions and the industry's resistance to digitization. They also delve into banking dynamics amid rising interest rates, dissecting the emotional toll of entrepreneurship in the business acquisition landscape.
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Background Check Business Model
- The business is a data wholesaler providing background checks.
- It likely charges per report, focusing on criminal records for pre-employment screening.
Background Check Process
- The company receives applicant information and searches criminal databases.
- They return a report detailing any criminal history or outstanding warrants.
Offshore Facility
- The business includes a 15-year-old offshore document processing facility.
- This facility likely handles paper documents, possibly scanning and inputting data.
